WASHINGTON — A new approach to medical care could mean higher quality and less risk for patients while saving millions of dollars for taxpayers.
The Obama administration’s plan, announced Thursday, involves accountable care organizations, which are networks of hospitals, doctors, rehabilitation centers and other providers. They would work together to cut out duplicative tests and procedures, prevent medical errors, and focus on keeping patients healthier and out of the emergency room.
“We need to bring the days of fragmented care to an end,” Health and Human Services Secretary Kathleen Sebelius said in announcing a proposed regulation that defines how the networks would operate within Medicare.
If things work out, medical providers would share in the savings. If the experiment fails, they’ll get stuck with part of any additional costs.
Sebelius said early estimates are that Medicare could save as much as $960 million over three years. That’s not a lot for a $550-billion-a-year program, but officials say it’s a start. The estimate was prepared by Medicare’s office of the actuary, known for its independence.
Eagerly awaited by the health care industry, the new approach was called for in President Barack Obama’s health care overhaul. The first Medicare networks would open next year.
